How to Fix Incorrect 1099-NEC Reporting and Avoid Overpaying Taxes

What to Do About Incorrect 1099-NEC Reporting and How to Avoid Overpaying Taxes

When the IRS sends you letters, pay attention! Especially if you receive something called a “1099-NEC” form. It might mean you're being taxed on money you never actually received in that year.

❌ And you will NOT overpay the IRS - not on my watch.

Why Incorrect 1099-NEC Forms Can Hurt Your Taxes and Cause You to Overpay

Here’s what often happens: Some businesses send out 1099-NEC forms based on when they paid you, not when you received the money. For example, let’s say you did some work in December, but the company didn’t pay you until January. Some businesses will still throw that payment on your last year’s 1099.

How to Fix Incorrect 1099-NEC Reporting and Avoid Overpaying Taxes

What can you do about it?

1. First, ask the company to send you a corrected 1099.
   We can help you make that request and include the right IRS rule to support it. You can also refer to IRS guidance on Form 1099-NEC for more details about how reporting should be handled.
2. If that doesn’t work, you still have options.
   You can report the full amount from the 1099 to keep the IRS happy, and then adjust your return by listing the extra amount under “Other Expenses” with a short explanation.
3. Keep proof (like emails or envelopes) that show when the payment actually came in—this helps in case the IRS has questions later.

We don’t want you paying taxes on money you didn’t receive. If your 1099-NEC doesn’t look right, we’re here to help you fix it and file your small business taxes correctly.—so you can avoid overpaying taxes.

You COULD push the easy button and let us handle all of this for you, so that you can focus on growing and managing your business. We’re here when you are ready!